The traditional reimbursement system in healthcare can hinder valuable innovations. Introducing subscription models akin to Netflix could reshape access to drugs and treatments, a strategy already in motion in countries like the UK, Australia, and Sweden.
Consider antibiotics. Despite their life-saving potential, developing new antibiotics isn’t lucrative. They face competition from low-cost generics and undervaluation by patients and health plans. This leads pharmaceutical companies to shy away from their development, resulting in a scarce pipeline for potential new antibiotics.
The Pasteur Act, proposed in the US, aims to foster new antibiotics through a subscription model. Such models could revolutionize healthcare by encouraging innovations like gene therapies, especially those with high price tags.
To make subscription models effective:
- Define Purpose: Trust is key. One model safeguards valuable options for the future, while the other grants access to expensive treatments. Building trust is crucial for government, payers, and providers.
- Negotiate Wisely: A two-part tariff strategy, comprising a subscription fee and per-unit charge, can be advantageous. However, negotiating fees is challenging as they dictate the value split between innovators and consumers. Establishing fair principles beforehand can ease negotiations.
- Align with Norms: Acceptance hinges on alignment with ethical norms. Healthcare innovations that seem to prioritize financial gain over ethical duties often face opposition. Models like Louisiana’s, ensuring access to life-saving medications for those unable to afford them, receive praise for reducing health inequality.
In summary, successful subscription models in healthcare rely on trust-building, fair negotiations, and alignment with ethical healthcare norms to drive innovation and improve access to crucial treatments.
